Title: The implementation of blockchain technology on tax administration in developing countries

Authors: Ulingeta Obadia Lebson Mbamba

Addresses: Department of General Management, University of Dar es Salaam Business School, University of Dar es Salaam, Tanzania

Abstract: Technological advancements have led to constant change and adaptation of all systems, including the tax systems. Taxation is the process by which a government collects financial levies from individuals and organisations to fund public services and infrastructure. One of these technologies is blockchain technology. Blockchain tracks transactions, authorises transactions and adds them to the database. The paper shows how blockchain can be used or is already being used in pay as you earn tax, customs tax, value added tax and excise tax. The paper also highlights the challenges of implementing blockchain technology, especially in developing countries, in terms of legal, technological and organisational aspects. In order to benefit from blockchain technology the paper recommends: training on blockchain technology to tax administration staff and taxpayers, proper regulatory framework, development of other fourth industrial revolution technology tools, collaboration among partners, and further research on adoption of blockchain technology.

Keywords: taxation; blockchain technology; developing countries; excise duty; custom tax; pay as you earn tax; value added tax.

DOI: 10.1504/IJBC.2023.135001

International Journal of Blockchains and Cryptocurrencies, 2023 Vol.4 No.3, pp.187 - 201

Received: 05 Apr 2023
Accepted: 09 Jun 2023
Published online: 24 Nov 2023 *

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